Facts about Initial Public Offering (IPO) you should know

Facts about  Initial Public Offering (IPO) you should know

An initial public offering (IPO) is the initial sale of shares by a company to the public.

Broadly speaking, companies are either private or public. Going public stands for a company is changing from private ownership to public ownership.


Going public raises funds and offers several advantages for a company.

The dotcom growth decreased the bar for companies to carry out an IPO. Many startups went public without any income and little more than a business plan.

Getting a hot IPO could be very hard, if not impossible.

The process of underwriting involves raising funds from investors by issuing new securities.

Companies hire investment banks to underwrite an IPO.

The path to an IPO consists primarily of assembling the formal written documents for the Securities and Exchange Board (SEBI) and selling the issue to institutional customer.

The only way for you to get shares in an IPO is to have a frequently traded account with one of the investment banks in the underwriting syndicate.

An IPO company is difficult to analyze because there isn’t a lot of historical info.

Lock-up periods prevent insiders from selling their shares for a certain period of time. The end of the lock-up period can put strong downward pressure on a stock.

A tracking stock is created when a company spins off one of its divisions into a separate entity through an IPO.

Also See Initial Public Offering (IPO)


You can leave a response, or trackback from your own site.

11 Responses to “Facts about Initial Public Offering (IPO) you should know”

  1. khan nasiima says:

    i am a housewife and i want to know about stock market and where to invest money in share market ,please suggest

  2. amit srivastava says:

    PLz give the more information on “IPO”.Who’s could Bring the IPO who’s not, and How , What are the rules & regulation for the co. who bring the IPO,?.For generally the Co.’s why choose the way to come IPO.
    otherwise this information is uncomplete.

  3. susmitha says:

    Is it necessary to take technical training before starting an online trading?

  4. rahul says:

    If you don;t know anything about share market then best thing is take to a broker. You have to have a broker anyway to share stocks, so why not take free advice from brokers. Most of the time Brokers make money when u make money. I would prefer a local broker to online broker. Local broker can be reached via phone or in person and u can rely on his/her advice.
    Hope this helps

  5. rahul says:

    Ipo is initial public offerings made by a public limited companies. Talk to your broker/agent to buy/suggest ipo’s. Ipo is a very good investment overall.

  6. kosterix says:

    stay away from IPOs. Cannot be analyzed. If stock shows profit after a few years, step in.

  7. com says:

    This is an amazing) post

  8. srinath says:

    pl guide me to invest in which company can give me e goods returns

  9. divz says:

    it was good to know about share market to day and i hope to enchance my knowledge further…………………!!!!!!!!!!!!!!!!!!!!!!

  10. local seo says:

    You’r story helped me a lot, thank’s for that, gonna save it, saving that post right now^^

  11. Justin Addai says:

    I feel its not about selling your company to the public and gaining financially by solving your IPO but its about solving the introspect of your IPO.

Leave a Reply